Calling Rally in SPY
Back on the afternoon of June 30, just ahead of the long July 4th holiday weekend, Mike Paulenoff posted to the MPTrader.com Coverage List the following chart-based commentary about a forthcoming directional price move in the SPY (SPDR S&P 500 ETF Trust), which was trading at 379.38 at the time:
"From the perspective of my Hourly SPY setup, today's low at 372.56 followed by the powerful rally to an intraday high at 380.66 has the right look of the conclusion of an 'intervening pullback' that separates two significant recovery rally uplegs. The first upleg was from 362.17 on 6/17 to 393.16 (6/28). If today's upside pivot reversal initiated a secondary loop up within a larger recovery rally period, and if the forthcoming advance is equidistant to the distance traveled of the initial advance (+30.99 SPY points), then the upside target window will be in the vicinity of 400-404."
During the next five trading sessions, SPY proceeded to climb to a high of 390.64 last Friday afternoon (July 8), a full 3% above its price at the time of Mike's June 30 Coverage List post.
What now? All of the price action carved out since mid-June has the potential to thrust SPY considerably higher, but the advent of another round of quarterly earnings starting this coming week certainly will have repercussions for the 500 big cap names in SPY.
Join Mike and MPTrader members for their intraday opportunistic discussions and chart analyses of individual stocks, ETFs, macro indices, commodities, and Bitcoin as they navigate volatile market conditions heading into and during earnings season.
More Top Calls From Mike
Back on July 5, Mike Paulenoff alerted MPTrader members to the bullish potential in MRNAs chart.
With the stock trading at 154.68, he showed the charts projection towards resistance at the March 22 high of 188.33, writing: Just maybe, the 6 month base-accumulation period and pattern carved out by MRNA during 2022 after a wicked corrective-bear phase is starting to make its presence felt technically.
Back on July 17, with ARKK trading at 44.22, Mike Paulenoff commented:
ARKK (Cathie Wood ARK Innovation Fund) ... my attached 4 Hour Chart shows the price structure has carved out a May-July Rounded Bottom formation that is putting upward pressure on a key resistance zone from 46.70 to 48.12, and if hurdled, will trigger upside projections to 58-60...
Since then ARKK in fact climbed to a new 7-week recovery high at 49.
Back on Thursday, July 7, 2022, this is what Mike Paulenoff discussed with MPTrader members about the ARK Innovation ETF (ARKK):
Its Time to take a look at the technical setup in ARKK, putting aside the miserable narrative that surrounds ARK fund manager Cathie Woods performance from the February 2021 ATH at 159.70 to the May 2022 low at 35.10 (-78%).
Back on June 17th, this is what we discussed about the TLT (20+ Year T-bond ETF)when it was trading at 112.53:
The TLT put in a big upside reversal day yesterday (6/16/22) from 107.80 to 111.72, closing RIGHT AT the High of 111.72, leaving behind a Bullish Engulfing Candle on my Daily Chart (not shown here). The last time TLT traded at 107.
On Friday June 17, Mike Paulenoff posted an alert to MPTrader members about an emerging setup in AMZN:
AMZN is one name that pops out at me that should benefit from an initial and sustained correction in traditional energy and transportation costs. AMZN needs to climb above and sustain 110 for my work to generate a more confident technical signal, otherwise, I cannot rule out another loop down that tests and breaks key May-June support at 101.26 to 101.